Clients are optimistic about finances next year: KPMG

A new KPMG survey shows that despite the economic challenges, Americans are optimistic about their finances in the coming year. KPMG US Products Line Business Leader Matt Kramer joins Rich! discussing how households manage their finances as inflation remains a stressor.

Kramer notes that wages are still within inflation, allowing consumers some money to pay for things like vacations and eating out. However, consumers are still looking for value, spending more money in discount stores and choosing to exchange some products for cheaper alternatives.

He adds that Gen Z is more comfortable shopping online and in stores, which he says “tells companies that they need to be prepared to serve their customers across all those channels and be prepared to find categories that are very interesting.”

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This post was written by Melanie Riehl

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It seems like a daily occurrence that we see data showing that Americans are skeptical of economic growth in the near future.

But how do Americans feel about their financial situation?

However, a new survey from KPMG shows that despite the general economic climate, Americans are very optimistic about their financial situation to help explain.

Welcome to Matt Kramer KPMG we are a business leader.

Thank you very much for taking the time.

You must explain some of these results to us here.

How do people feel and how do families feel about their economy if you will?

Yes, from research.

We’re talking about the complexity of the mix because a lot of things that come to consumers in this day and age, of course it’s economic conditions and inflation, um the energy transition, uh digital future and gen A I.

But the good news is that they still have hope and I think that’s encouraging.

Now, one of the things that we’re really pointing to is the strength of the labor market, you know, 8.5 million jobs that are still out there and unfilled, it’s coming down a little bit from the peak of 12.2, but it’s also very exciting. that the reward is still there.

So I think that gives customers confidence that, you know, we can have income that will pay for vacations, pay for dining.

Um, indeed, some of those things they like to enjoy, like the shows, although maybe not at the top at the end of the show, but certainly some are, it shows that they enjoy, uh, this summer.

The story continues

It’s very encouraging that they’re, they’re, you know, they’re, uh, they’re looking at, can I buy more, can, um, in the interest rate environment, can I get in, you know, home buying situation in, prices still too high or big prices like cars?

This is where it will be very interesting to see how it plays out.

Yes.

Where are people prioritizing the price right now?

I mean, say, we’re talking about a backdrop where the services side of inflation has remained strong but on the positive side, people have made a clear decision.

Well, as evidenced by earnings, as we saw at Best Buy where we prioritize, not buying the next big screen TV, or home theater or device.

And instead, he says, well, I pay less for groceries or other things.

So what little add-ons I can prioritize right now, where, what kind of data to see the net from.

Yeah, I think, I think, what the survey really says is, you know, consumers have been trained over the last few years to deal with inflation.

So 65% in our survey said they would spend more money at discount stores.

They are still getting certain categories and parts of their budget.

They are comfortable with buying at a lower price and they say that number in the 65 is 60% above the 200,000 brackets.

So even the high end is really comfortable with private label products, discount products.

And that allows them to set aside money for the things I mentioned earlier, like enjoying summer vacations, enjoying dying, enjoying events and activities with their friends and family.

What do we see in terms of generational differences?

Where do different generations prioritize purchasing unique experiences or where do they focus their spending?

Yeah, I think it is, and that really goes into the digital side, of our research, you know, I think what consumers expect is a seamless experience from retailers is when they look in stores, they want to have everything. channels, so they want to be able to shop in stores, they want to be able to shop online and they’re really into social commerce.

So I think one of the things that really appeals to the Gen Z brand is that they have a very easy shopping and social business and they’re very comfortable when you’re in the store.

So um the second highest group after the baby boomers, as far as wanting to shop more was Gen Z.

So I think it really tells uh companies that they need to be ready to serve their customers on all those channels.

Um, and be prepared to find categories that really interest them.

Matt, we can talk about this for days, Matt, we have to leave things there.

Matt Kramer, who is the business leader of KPMG US.

Thank you very much for helping us explain some of the research results.

Thanks for having me.